Can you collect unemployment if receiving severance from Washington ESD?
My company laid me off last month and gave me a severance package worth about $8,000 spread over 12 weeks. I want to file for unemployment benefits through Washington ESD but I'm not sure if the severance payments will disqualify me or reduce my weekly benefit amount. Has anyone dealt with this situation before? Do I need to report the severance when I file my weekly claims?
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Norah Quay
You can definitely collect unemployment while receiving severance in Washington, but you'll need to report it on your weekly claims. The key thing is whether it's considered wages or not. If it's a lump sum severance that's not tied to specific work weeks, it usually won't affect your benefits week by week.
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Kelsey Chin
•Thanks! Mine is being paid out weekly over 12 weeks, so I'm wondering if that makes it different than a lump sum.
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Norah Quay
•Weekly payments might be treated differently. You should definitely report each payment when you file your weekly claim to be safe.
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Leo McDonald
I went through this exact situation last year. Had severance paid over 8 weeks and was still able to collect unemployment. Washington ESD didn't reduce my benefits at all because the severance wasn't considered 'wages' for work performed. Just make sure you're honest about it on your claims.
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Kelsey Chin
•That's reassuring! Did you have any issues getting through to Washington ESD to ask questions about reporting it?
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Leo McDonald
•Oh man, trying to call Washington ESD was a nightmare. Spent hours on hold and kept getting disconnected. Finally used this service called Claimyr that helped me get through to an actual agent. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works.
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Jessica Nolan
The general rule is that severance payments don't count as wages for unemployment purposes in Washington unless they're specifically allocated to certain weeks. Since yours is spread over 12 weeks, Washington ESD will likely want to know the specific amount each week, but it shouldn't disqualify you from benefits.
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Angelina Farar
•Wait, I thought ANY income had to be deducted from your unemployment benefits? This is confusing.
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Jessica Nolan
•Not all income is treated the same. Severance is different from wages because you're not performing work for it. But you still have to report it - Washington ESD makes the final determination.
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Kelsey Chin
•So I should definitely report it but it might not affect my benefit amount? I don't want to mess this up.
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Sebastián Stevens
BE CAREFUL!!! I didn't report my severance thinking it wouldn't matter and Washington ESD hit me with an overpayment notice 6 months later. Had to pay back $2,800 plus penalties. Always report everything even if you think it won't affect your benefits!
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Kelsey Chin
•Oh no! That's exactly what I'm worried about. Did you have to appeal the overpayment or just pay it back?
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Sebastián Stevens
•I tried to appeal but lost because I hadn't reported it initially. The hearing officer said ignorance isn't an excuse. Just be honest from the start!
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Bethany Groves
I'm dealing with something similar right now. Got laid off in December and receiving severance through March. Filed for unemployment and reported the severance on every weekly claim. So far Washington ESD hasn't reduced my benefits, but I keep expecting them to.
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KingKongZilla
•How much severance are you getting per week? Maybe there's a threshold where it starts affecting benefits.
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Bethany Groves
•Getting about $650 per week in severance. My unemployment benefit is $512 per week and I'm still getting the full amount.
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Rebecca Johnston
This whole system is so confusing. Why can't Washington ESD just have clear guidelines posted somewhere? I've been trying to call them for two weeks about my severance situation and can never get through.
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Norah Quay
•The guidelines are on their website but they're written in legal jargon that's hard to understand. For specific situations like yours, talking to an agent is really the only way to get clarity.
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Nathan Dell
•I had the same problem getting through to Washington ESD until someone told me about Claimyr. It's a service that helps you actually reach an agent without spending hours on hold. Worked great for me when I had questions about my claim.
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Maya Jackson
From what I understand, Washington treats severance differently depending on how it's structured. If it's payment in lieu of notice, it might be treated as wages. If it's just a goodbye payment, it usually doesn't affect benefits. The timing of payments can also matter.
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Kelsey Chin
•Mine is just a general severance package, not in lieu of notice. Hopefully that means it won't affect my benefits.
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Tristan Carpenter
•Even 'general' severance can be complicated. I'd recommend getting clarification from Washington ESD directly rather than guessing.
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Amaya Watson
I work in HR and deal with this question a lot. In Washington, most severance doesn't reduce unemployment benefits as long as it's not tied to specific work periods. But employees MUST report it on their weekly claims. The failure to report is what gets people in trouble later.
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Kelsey Chin
•That's really helpful! So as long as I report it honestly, I should be okay even if Washington ESD decides it affects my benefits?
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Amaya Watson
•Exactly. Honesty is key. If you report it and they decide to reduce benefits, that's their decision. But if you don't report it and they find out later, that's fraud.
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Grant Vikers
•How would Washington ESD even find out about unreported severance?
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Amaya Watson
•They cross-reference with employer wage reports and tax records. It might not show up immediately but it usually catches up with people eventually.
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Giovanni Martello
I'm in the same boat - got severance and unemployment at the same time. Been reporting the severance every week and so far no issues. Better safe than sorry!
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Kelsey Chin
•How long have you been collecting both? I'm hoping this works out smoothly.
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Giovanni Martello
•About 6 weeks now. The key is just being consistent with reporting everything on your weekly claims.
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Savannah Weiner
This is why I hate dealing with government agencies. The rules are never clear and everyone gives different advice. Just report everything and hope for the best I guess.
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Levi Parker
•I feel you! The unemployment system is so unnecessarily complicated.
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Libby Hassan
•At least Washington ESD is better than some other states. Could be worse!
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Hunter Hampton
If you're having trouble reaching Washington ESD about this, I used Claimyr recently and it was a game changer. Instead of calling for hours, they helped me get connected to an agent in about 20 minutes. Worth checking out if you need to speak with someone directly.
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Kelsey Chin
•I keep seeing Claimyr mentioned. Is it expensive to use?
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Hunter Hampton
•I thought it was reasonable considering how much time it saved me. Way better than taking time off work to sit on hold all day.
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Sofia Peña
Bottom line: report your severance on every weekly claim even if you think it won't matter. Washington ESD will make the determination about whether it affects your benefits. Being honest upfront protects you from overpayment issues later.
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Kelsey Chin
•That seems to be the consensus. I'll make sure to report it every week. Thanks everyone for the advice!
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Aaron Boston
•Good plan. It's always better to over-report than under-report with unemployment benefits.
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